End of offer period and
trading update
We Help Everyone Enjoy
Amazing Technology
End
of offer period
Currys plc ("Currys") notes the announcement by
Elliott Advisors (UK) Limited ("Elliott")
on 11 March 2024, and the announcement by JD.com on 15 March 2024,
stating that each of Elliott and JD.com, respectively, do not
intend to make an offer for Currys, and that they are consequently
bound by the restrictions under Rule 2.8 of the City Code of
Takeovers and Mergers.
The Board of Currys also confirms that no
proposal has been received from JD.com.
Trading update
In the period since Peak1
trading, sales have been stronger than the Group's
expectations.
In UK & Ireland and Nordics,
like-for-like sales are positive and gross margins remain robust.
Combined with continued strong growth in Services which support
both stronger margins and Customers for Life, Group adjusted profit
before tax is now expected to be at least £115m.
The disposal of Greece is on track
to complete in the first half of April, resulting in the Group
finishing the financial year in a net cash position.
Current Year Guidance
Group adjusted profit before tax is
expected to be at least £115m (previously guided
£105-115m).
Alex Baldock, Group Chief Executive
"We've been
working to get the Nordics back on track, while keeping up the
UK&I's encouraging momentum. Both are progressing well, despite
still-challenging markets, and we now feel confident to raise this
year's profit expectations to at least the top of our previous
guidance. Stronger trading, selling more of the solutions and
services that boost margins and build customers for life, and
strong cost discipline have all been important.
We expect to
finish the year in a net cash position, with our already healthy
balance sheet and liquidity further strengthened by the sale of
Kotsovolos.
Thank you to
all my colleagues who are making this possible - you're building an
ever-stronger Currys that helps everyone enjoy amazing
technology"
Current year guidance
Guidance is based on Greece being
fully consolidated for the year.
· Group adjusted Profit Before Tax is expected to be at least
£115m (previously £105-115m)
· Capital expenditure of around £70m (unchanged)
· Net exceptional cash costs around £50m (unchanged)
· Pension contributions of £36m (unchanged)
· Depreciation & amortisation of around £310m
(unchanged)
· Cash payments of leasing costs, debt & interest of around
£270m (unchanged)
· Cash interest of around £30m (unchanged)
· Cash tax payments of around £10m (unchanged)
· Group to finish the year with net debt better than last year's
closing position of £(97)m (unchanged)
The Group expects the Greece
disposal to complete in the first half of April 2024 and the full
year results will show Greece as a discontinued operation.
Following the disposal, the Group expects to finish the financial
year in a net cash position.
Longer term guidance
· Group continuing to target at least 3.0% adjusted EBIT margin
with focus on sustainable free cash flow generation
· Exceptional cash costs expected to fall significantly from
2024/25 onwards
· Scheduled pension contributions will rise to £50m in 2024/25
and to £78m for the following three years before a final payment of
£43m in 2028/29 within the current agreement. Pension contributions
will cease when the actuarial deficit reaches zero.
1. "Peak" refers to the 10 weeks ended 6 January 2024.
Next scheduled
announcement
The Group is scheduled to publish a pre-close
full year trading update on Tuesday 14 May
2024.
For
further information
Dan
Homan
|
Investor Relations
|
+44 (0)7401 400442
|
Toby
Bates
|
Corporate Communications
|
+44 (0)7841 037946
|
Tim
Danaher
|
Brunswick Group
|
+44 (0)2074 045959
|
Information on Currys plc is available
at www.currysplc.com
Follow us on LinkedIn:
@currysplc
Follow us on X (formerly Twitter): @currysplc
About Currys plc
Currys plc is a leading omnichannel
retailer of technology products and services, operating online and
through 815 stores in 8
countries. We Help Everyone Enjoy Amazing Technology,
however they choose to shop with us.
In the UK & Ireland we trade as
Currys; in the Nordics under the Elkjøp brand and as Kotsovolos in
Greece. In each of these markets we are the market leader,
employing almost 28,000 capable and committed colleagues. Our full
range of services and support makes it easy for our customers to
discover, choose, afford and enjoy the right technology for them,
throughout their lives. The Group's operations include
state-of-the-art repair facilities in Newark, UK,
a sourcing office in Hong Kong and an extensive
distribution network, enabling fast and efficient delivery to
stores and homes.
Our vision, We Help Everyone Enjoy
Amazing Technology, has a powerful social purpose at its heart. We
believe in the power of technology to improve lives, help people
stay connected, productive, healthy, and entertained. We're here to
help everyone enjoy those benefits and with our scale and
expertise, we are uniquely placed to do so.
We're a
leader in giving technology a longer life through repair, recycling
and reuse. We're reducing our impact on the environment in our
operations and our wider value chain and we will achieve net zero
emissions by 2040. We offer customers products that help them save
energy, reduce waste and save water, and we partner with charitable
organisations to bring the benefits of amazing technology to those
who might otherwise be excluded.
Certain statements made in this announcement are
forward-looking. Such statements are based on current expectations
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from any expected future
events or results referred to in these forward-looking statements.
Unless otherwise required by applicable laws, regulations or
accounting standards, we do not undertake any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future developments or otherwise. Information
contained on the Currys plc website, LinkedIn or the X (formerly
Twitter) feed does not form part of this announcement and should
not be relied on as such.